The Chinese government has started to control officials' expenditure. Chinese media evaluate this measure as an extension of the 'thriftiness' principle that President Xi Jinping has consistently emphasized since he came to power in 2012, but some analyses suggest that it is also intended for Xi to take control of a party in turmoil amid increasing economic uncertainties due to the U.S.-China tariff war.
According to local media in China on 19th (local time), the Central Committee of the Communist Party of China and the State Council announced a revised 'local government ordinance on saving practices and opposing waste.' The ordinance includes provisions that prohibit the arbitrary extension of overseas business trips and restrict the offering of high-end meals, cigarettes, and alcohol during official meals.
In addition, the ordinance directs austerity for officials in various institutional sectors. Greeting guests at the airport has been banned, and lavish floral arrangements will no longer be provided at meetings. Furthermore, office furniture has been instructed to be used for as long as possible. This indicates an intention to reduce unnecessary government expenditure down to the smallest details.
The People's Daily reported this, stating that 'practicing thrift and opposing waste is a glorious tradition of our party and an admirable practice.' It also noted that this regulation would 'contribute to creating a culture that regards waste as shameful and respects thrift.'
However, there is a prevailing assessment that this austerity measure is rooted in Xi's intention to maintain control over the party. The Wall Street Journal noted that 'this campaign is related to the issue of Chinese leader Xi Jinping asserting control over the party during uncertain times,' and that 'President Trump's imposition of tariffs and efforts to contain China complicate Xi's attempts to transform his country into a technological powerhouse.'
David Bandurski, director of the China Media Project, which studies Communist Party discourse, said, 'Such campaigns are always about power and legitimacy,' adding that 'rather than genuinely establishing integrity and accountability among public officials, the party leadership is focusing on demonstrating control and discipline.'
The austerity policy is also related to China's entry into a phase of economic recession. The Wall Street Journal reported that the tightening trend has strengthened even after the Chinese government announced it would inject more finances into revitalizing the economy at the National People's Congress in March. At that time, the Chinese government set this year’s economic growth rate target at 5% and determined the fiscal deficit rate at a record high of 4% of gross domestic product (GDP). This means a commitment to actively expand government expenditure.
Bloomberg reported that 'as budget constraints arise from decreased land sales revenue and local governments face massive liabilities, Xi Jinping underscored once again a policy urging officials to reduce expenditure,' adding that 'the central government instructed bureaucrats to 'get used to saving' by the end of 2023, reinforcing Xi's campaign against corruption and curbing luxurious behavior.'
Since coming to power, Xi has emphasized the frugality of public officials as part of efforts to eradicate corruption. In 2014, Chinese anti-corruption authorities launched an investigation into the state-owned oil corporation, PetroChina, which was one of the bases of 'the oil faction,' a powerful group within China. The Wall Street Journal noted, 'many experts say that these policies, which have been ongoing for years, are a way to purge Xi's competitors.'